Bring
milk to boil in a vessel. Once it comes to boil bring the flame to
medium and add lemon juice and keep stirring it continuously till
milk curdles properly. (while this process make sure you should not
curdle milk a lot, else texture will be hard. Once you see all water
is separated immediately remove the vessel from flame and you can
also put the vessel in cold water to stop curdling process or
immediately go to next step)

Strain
the paneer in muslin cloth.

Wash
paneer (chenna) under running fresh cold water to remove the sourness
of lemon.

Make
sure the sourness is completely gone.

Now
bring together the edges of cloth and tight it hard to squeeze the
excess water from paneer.

Hang
the cloth for around 30 minutes.

After
30 minutes take out the paneer in a bowl. It will be of crumble
texture.

Knead
the paneer properly for around 10 minutes to get a smooth and soft
dough.

Now
start making small balls (make them small as they will get double in
size ) of the paneer of equal size.

Make
sure there are no cracks in balls. They should be smooth.

Now
bring water and sugar to boil in a big vessel. When sugar gets
dissolved , add rose essence . Bring the heat to medium and add
rasgulla balls to it. Make sure your vessel is big enough as
rasgulla's will get fluffy.

Cover
the vessel with lid and let it cook for around 15 minutes.

Remove
the vessel from flame and let it cool. Serve it chilled and garnish
with nuts.